MegaPartnering2

JayAbrahamsRelationalCapitalSeminarwithJ.T.Foxx

Thoseofyouwhomissedyesterday(goodorbad,butyourowndecision)wecovered
foundations, psychologyreally the science of leveraging all kinds of tangible and
intangiblethingsthat otherpeoplehavecreated:distributionchannels,brands,goodwill,
assets,access.

I asked J.T. as a courtesy (because I showed those of you yesterday) that I'd over
engineered my PowerPoint by about seven days. That there was no way I could humanly
coverallthegroundIwanted.Andrespectfully,butregrettably,thoseofyouwhoweren't
hereyesterday,ifyouwanttoknowwhatyoumissed(andImeanthisreallyhonorably)talk
to somebody who was here, because if I repeat that, we'll be done in two hours and we
won'tgoforward.So,ifeveryonewillshareaninsight

One of the keys to success in life is how well you proactively respond to unexpected
dynamics in your business or life. Total proactive flexibility is the key to everything, and
that'swhatshowswhatyourtensilestrengthisandwhatyou'remadeof.We'llmakethe
mostofittogether,okay?Cool.

There's an unimaginable spectrum, and scope, and scale of profitable possibilities

availableatyourfingertips,andforthoseofyouwhomaybeinthewrongroom,thisisa
session on basically using the concept of relational capital to achieve maximum leverage,
anditisquestioningandtranscendentofthenormalexplanationofrelationalcapital.

It's not about your relationship with your buyers exactly (although it has an
implication). It's about how you (as a business owner, as an entrepreneur, as somebody
whohasaproductorservice)canaccess,leverageethicallyoffofothercompanies,other
organizations, other medias, other influencers' relational capital to dramatically and
meaningfully create enormously greater success, profitability, impact in a multitude of
ways.

We'vecreatedaboutfortythreewaysjusttogiveyourmindalittlebitofaexerciseyour
possibility,andI'llgothroughthemquickly.

1. Leverageandmaximizerelationalcapital

Why would you possibly want to leverage and maximize somebody else's relational
capital?Well,it'seasytoestablish.Let'stakealook.Iftomorrowmorningyouwantedtobe
in another city or another country, or you wanted to add a sales force, or build a
manufacturing facility, or develop a new product or service; it would take time, money,
expertise, personnel, time figuring out recruiting, money paying for it, training. It would
takeadevelopmentallearningcurve.Butifyoubasicallymakeastrategicrelationalalliance

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deal, partnershipI call them "power partnerships"instantaneously, you can eliminate

and avoid all of that, and be operating, have access to people, distribution, facilities,
technology,products,andcapitalinstantly.

2. Augmentyoursellingeffort

Mostpeople,ifanybodyknowsmybodyofworkIhaveappalling,heartfeltconcern
for the majority of businesses, because they build an entire enterprise on one source of
revenue: sales force, or display ads, or search engine optimization, or showing at trade
shows,orwhatever.Itdoesn'tmatter.

Ifthatisadescriptionofyourbusiness,youcoulduserelationalcapitalleverageandset
upallkindsofadditionalsourcesofrevenue,accesstothesamemarket,differentmarkets,
moredirectinfluenceallwithoutriskingorinvestingapenny,andonlypayonresults.And
thatgivesyoulatitudeandlicensetoanunimaginablygreaterscopeofpossibilities.

3. Increasesyoursalesandprofitability

Most conventional businesses have two dilemmas that constrain them. Well, three.
Oneislimitedresources,infrastructure.Twoisacertaincoststructurethatuntilitismet,
you'renotbreakingeven.Youcanallappreciatethat.Well,ifIcanintroduceyoutomorrow
to five new sources of quality buyers, where you only pay on results, and you only pay
eitheraportionoftheprofit,orifyoupayoutalltheprofit(you'repayingthatoutbecause
youknowthat,thatnewbuyerisgoingtobuyoverandoverandoveragainfromyou,so
you'reinvestingamodestamountofmoneythatsomebodygaveyoutogivetothemtoget
alltherepeatbusiness)theimplicationsareprofound,becauseonceyoucoveryourfixed
overhead, all that incremental business could be three, four, five times more profitable. I
canbealittletoosophisticated,soifIconfuseyou,yougo[extendsarms].AmIconfusing
anybody?Cool.

4. Lowerthebarrierofentry

Hypotheticalquestion.So,somebodyherehasgotarestaurant,oryou'vegotahealth
club,oryou'vegotamedspa(itdoesn'tmatterwhatyou'vegot)andyouwanttoopenupa
facility in another market. Left to your own devices, what are your options? Go to the
market.Spendalotoftimetryingtofindalocation.Negotiate.Signalongtermlease,even
thoughyoudon'tknowifit'sgoingtoworkornot.

Number two. After you sign the lease, you've got to recruit, right? Got to outfit it.
Numberthree.Nowthatyou'veoutfittedandrecruited,andyou'vegottheclocktickingon
yourpayroll,guesswhat?Youdon'thaveanyclients.So,whatdoyouhavetodo?You've

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gottorunads.You'vegottorundirectmail.You'vegottorunradio.You'vegottorunTV.
You'vegottodopromotions.Mightwork,mightnot.

Or,youcouldgointoaJV.Youcoulddoapartnershipanduserelationalcapital.You
cangotosomebodywho'salreadygotafacility.We'vedonealotofpeoplein,forexample,
laserhairremoval.Wefindadermatologistthat'sgotone(andmostofthemhavealready
paid out $10,000 a month for their facility, they pay out $10,000 to $15,000 to lease the
equipmentandtheyhavefivecasesaday).Andthosearenormallyduringtheday.

Andwe'llbasicallygetsomebodywhowantstobeinthelaserhairremoval[business]
andsay,"Whyintheworldwouldyouwanttoleaseabuilding,anddoallthiswhenyoucan
basicallyusesomebodyelse'sfacilitiesincrementallywhenit'snotbeingused,sharetheir
offices,payonlyonusage,notevenhavetopayforthemarketing(becauseyoucangoto
themediaandengineerjointventuresthatareperformancebasedunlessthere'salegal
restrictionmedicalandsomeoftheprofessionshaveit).Butyoucouldthrowme,ifIhad
five days with you, any scenario imaginable, and I'll throw you back how to do it without
riskingapenny,withoutspendinganytime,bringittomarketfast,anyofalltheoptionsin
theworld.Ifitoutgrowsthat,youcanmoveit.

It's just that leveraging relational capital gives anybody in any business enormous
upside expansion, gets rid of almost all the downside risk, eliminates most all the capital
requirements.Unfortunatelyforthe200ofyouwhoweren'thereyesterday,Itoldacouple
ofstoriesofhowmostpeoplecometomeandsay,"Oh,Jay.IfIonlyhadamilliondollars.
Oh,Jay.IfIonlyhadtenmilliondollars,Icouldowntheworld."

AndIalwayssay,"Well,ifyouhadthemoney,whatwouldyoudowithit?"Andthey'll
say,"Oh,well,Iwouldopenafacility.Iwouldhireasalesforce.Iwouldhavemyproduct
manufacturedhere.I'ddothisanddothat."

I'd say, "Well, do you not think that at any point in time there's not some other
company, somewhere in the world, that has the polar opposite of your problem, and
solving your problem will help them even more than you? That somebody's got facilities
they're not using, manufacturing they're not using, a sales force they're not optimizing, a
relationshipthey'renotmaximizing?

Therealwaysare,but youhavetoshiftthe wayyoulook,becausemostpeoplehave

been inculcated and trained to be islands and do it all yourself. Go out there! Break
through!Makeitonyourown!Spendallmymoneytryingtofigureitout!That'sfinefor
your guys, if you want to be inefficient; if you want to basically minimize instead of
optimize. But by leveraging to the maximum the relational capital that exists in other
companiesandthatcanbetherelationsthey'vegotwiththeirmarketthesamemarket
youwanttoreach.

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It could mean the relations their salespeople have with the buyers. Same buyers you
want to reach. It could mean the relations they have with expertise. The same kind of
expertsyouwouldneedthatthey'realreadypayingfor,ortheyalreadyhaveasstaff.Itcan
bethedistributionrelations.Thetruckingtheyalreadyhavethatyoucangetafreerideon.
Andonandonandon.

6. Understandyourclientbase

Let'ssee.Istartedoutintheseminarbusinesswithzeroclients.Ididthisin 1987.In
1989,Ihad47,000entrepreneursfromaroundtheworldwhospent$250millionwithme,
andIdidn'tspendadime,really(alittlebitofseedcapitalbutalmostinconsequential)to
do it, because I basically got them by accessing all kinds of other companies, other
organizations, other associations, other magazines, other consultants, other training
companiesthathadalreadyspenthundredsofmillionsofdollarstoreachthem,andIwas
abletobringthemin.Andnotonlydidtheycostmenothing,buttheywerehigherbuyers,
morequalitativepeople,highlyrepetitive,[and]theytrustedmemore.

Mostpeople,whenyoustartabusiness,youdonotnecessarilydodumb(butIthink
they're dumb) things like GroupOn, and you basically lose your ass trying to get a person
who won't come back unless you give them another deal. Well, when I started, my first
groupofbuyerswere$5,000buyers.Mysecondgroupwere$15,000.Ididn'tstartwithfive
dollaronesthatIwashopingtobumpupto$45andmaybeworkmywayto$500andthen
workmywayto$1,000.

You can go right to the real money ball, so to speak, when you use other people's
relationalcapital,becausethey'vealreadyspentthetimeandthemoney.Likethelocksin
theSuezorthePanamaCanal,they'vealreadygraduatedthesepeopleuptoaleveloftrust
and capacity. If they assign their good will, and their credibility, and their basic brand
currencytoyou,allofasuddenyoustartwiththataccess.Doesthatmakesense?Again,
I'mtryingtogiveyoualifetimecompressedintoafewminutes,andhalfofyoudon'teven
havethebenefitoftwohoursyesterday,butitstilloughttobeinteresting.

7. Youcanboostmarketpresence

It'snotsupposedtobe"markit."It'ssupposedtobe"market."Youcanboostmarket
presence.

Monday. I am a partner in a publishing company that's publishing four different

magazinesonsocialmedia.There'soneeachcoveringadifferentforum:Twitter,LinkedIn,
Facebook, etc. First thing we did was we partnered with four companies: Office Depot,
EFactor,acompanycalledPROtoPROandanewslettercalledEarlytoRise.Intotality,we

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have14.2millionentrepreneursandbusinessownersthataregettingthis,whonowthink
thisisthecat'smeow,becausetheytrusttheirpartners.That'sthefirstleverage.

ThesecondleverageisbecauseIunderstandleveragingaffinitygroups.Ifyougetany
ofthese(andIcangiveJ.T.thelinksoyouguyscanhavethem.They'reonlineandthey're
free online) I am the person interviewing all the people. I'm interviewing Daymond John
from"SharkTank"whohappenstobeafriendofmine.I'minterviewingShaqnextweek.
I'm supposed to cointerview Mark Cuban with Daymond. And I get all this secondary
credibility.Secondly,I'mgivingallmycoolthingsawayinthemagazinebecauseI'mgetting
thirdcredibility.

The point is you can get control. Office Depot, EFactor, PROtoPRO, they're all nice
people. They spent hundreds of millions of dollars to build their credibility. They spent a
fortune. I'm not belittling them. But in one fell swoop if you understand ethically how to
leverage off of that, you can have control. You can have fundamental access. You can
basically have the impact of the asset without any of the overhead, any of the
management,anyoftheinfrastructures,anything.

Office Depot and my other partners have full social media staffs. They're paying
millionsofdollarsout.Igetaccesstothat.Ihavepartnerswho[are]working24/7bringing
ourmagazinesout.I'manequitypartner,butIgetfullaccesstoallthat.Theycametome
because I have relationships. Because I can bring a Stephen Covey, or I can bring a Tony
Shea,orIcanbringwhoeveryouwanttobring.So,relationalcapitalisverypowerful.

I'm negotiating right now with Sirius Satellite to do an entrepreneurial channel. And
theysaid,"Whyshouldwehaveit?"AndIsaid,"Well,letmeproveittoyouinoneday."
AndIgotStephenCovey,DaymondJohn,therovingeditorofInc.magazine,thefourteen
yeareditorofEntrepreneur.RussellSimmons.Aguyyoumayormaynotknow,PaulPilzer.
Tony Robbinseveryone to contact them and say, "Yeah, we'll be in if Jay does it." Well,
that's pretty powerful, don't you think, if you can do that in [snaps fingers]. And Fran
Tarkentonandabunchofotherpeople.Andwhenyou'vegotthatkindofpower,it'svery,
veryimpressive.

Now, I've spent thirtyfive years doing it. Am I saying you can do that overnight? Of
coursenot.WhatI'msayingisnobodyinthisroom,whetheryou'vegotastartupproduct,
whetheryou'vegotabusinesswhocouldn'tuseittoyourmaximumadvantageinaseries
ofprogressionslikethePanamaCanallocks?

Andthereareprobablysomeofyou,asIsaidyesterdayyouknow,I'mfoistedasthis
verysuccessfulperson,andIam,butIsuspectthattherearemanyofyouinthisroomthat
would dwarf my success. You have your own companies. You can do it opposite. You can
say, What have I got that I'm not maximizing? Distribution? Brand? Access that I can get

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controlofandputbackwardsthroughmydistribution? WhodoIknowwherethereissix
degreesofseparation?

I made a call yesterday to a friend, and I probably have Ashton Kutcher, who we're
goingtointerviewforourTwittermagazine.Idon'tknowAshton Kutcher,butafriendof
mineknowshim.HesagoodfriendandAshtonoweshimafavor,andmyfriendowesmea
favor,soIjusthadafavorassignedtome.[Laughter]

I'mnottryingtomakefun.Youcandoitalldaylong.Itsoundsunbelievable,butit's
not.I'mgivingittoyouprobablyatthe40,000footmark,butyoucanstartatsealeveland
justworkyourwayup.

8. Provideaddedvalueto(itshouldsayclients,but)

If you're a limited businessthere are a lotof businesses out there that have one or
two products to sell. And if you think about it, there are a number of corresponding
products or services that the same either type of buyer, or the same buying dynamic
requires. There are certain products and services you buy before one product. There are
certain products and services you buy right after that. There are certain products and
servicesyoubuyduringthat.

Thepoorconsumer,whetheritbeabusinesstobusinessoranindividual,isforcedto
figureoutwho'sviable,who'scredible,who'sauthentic,anddoitallhimselforherself.If
you go to a company, and you challenge them to perform due diligence on you, and you
prevail,andtheystartaddingyourcollaborative,corresponding,compensatingproductor
service to their offering, not only are you both generating more commerce, but you're
providingagreatservicetoaconsumerwho,lefttotheirowndevices,isgoingtohaveto
figureitoutforhimself.Theyalreadytrustyouwhenthey'rebuyingscreens,buttheydon't
knowwhotogotoforthis[looksatclicker].

Andyousay,"Hey,I'vejustpartneredwiththegreatestswitchercompany,andItested
them,andyoucantrustme.Ourreputationisontheline.Whenyoubuythis,buythis"
Or, you can even do better and say, "If you buy two of those, I'll give you ten of these."
That'sprettycool,butyou'reprovidingavalue.Doesthatallmakesense?

I've not done this kind of an explanation before in this kind of limited way, and I
explainedyesterday.I'mdoingitgenerouslyforyou,butequallyforJ.T.andI,becausethis
is the genesis of a company we want to do that will go out and just structure deals for
peopleandgetmodestconsultingfeesforfiguringitout,butgetpiecesofthedeal.AndI'm
justtryingtotalkitoutformyselftofigureitallout,andfiguretheresonatingpoints.

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But you are the beneficiaries. But if it sounds a littlenot out of contextbut
fragmented, it is. But you're a guinea pig. But I normally wouldn't do this freely and
generously.Now,youpaidwhateveryoupaid,butI'mtryingtodoittogivevalue,butto
alsoworkitthrough,sobearwithme.

9. Contributesubstantiallytoperceivedclientbenefits

It'sthesamething.I'llgiveyouagreatexample.Ihaveabodyofwork.Mywholelife.
I'vesoldhundredsofmillionsofdollarsworthofit.Regrettablyandfascinatingly,everybody
and their brother around the world has knocked me off. They appropriate my stuff. They
modelit.Theyemulateit.Theyplagiarizeit.Theydon'tacknowledgeme.

AndwhatI'vechosentodois:Itakemyveryexpensivestuff,andIpackageit,andIgive
itaway,andIfindwaystoaddvalue.

For example, I am a partner in a company that is a merchant services company.

Anybody here process credit cards? Raise your hand. Okay. Well, I'm sure that your daily
vigil is you get a call or a visit, or ten calls or ten visits from people trying to sell you
merchantservices.Andtheirmantraisgoingtobe,"We'regoingtocutyourcosts."

Well, the truth of the matter is, if you know anything about the industry (which I
studied) I'm going to give you an education and then I'm going to come back to this
concept. The industry sucks. They're a bunch of basic (most of themnot all of them)
shortsightedpeoplethatdogiveyoulowentrylevels,buttheyburyyouwithaddonsand
surcharges and stuff, and they take advantage of your trust. The normal duration of a
relationship'sabouttwelve,fifteenmonths,andtheygetyoubyreducingitafewpoints.

Iwenttoacompany.Isaid,"Ifyou'llcreateaseparatedivision,Iwillgiveyoumillions
ofdollarsofmybodyofworkthatyoucanfreelymakeavailabletomerchantsthatuseour
services."Wecanstillgivethemalowrate.WecaneliminatemostoftheB.S.surcharges
thatthenormalcompanythrowsonbecauseourgameisdifferent.We'renottryingtoplay
atwelvemonthgameandlosethem.We'retryingtoplayalifetimegame,andit'stoour
benefittoinvestgenerouslytogrowthem,tomakethemmoreprofitable.

So, I was able to use my body of work, give it to a third party, give them substantial
perceived benefits to their clients, and they're building a whole business division on that.
AndwhatIgotwasathirdequityinthecompany.So,itwasagooddealforallofus.But
there'sveryingeniouswaysdoesthismakesense?

And by the way, what I said yesterday is the very same thing I'll say today. I'm not
trying to turn you into masterful relational capital maximizing leveragers. I hate those
words. I'm just using it right now as a reference. There will be something cooler when I

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figure it out. [Laughter] But I am trying to haunt you, and obsess you, and ruthlessly
penetrateyourdreamsinapositiveway(notdirtydreams,butpositivedreams)aboutall
that'spossiblefromthetime,theeffort,theopportunitycost,theresourcesyou'vealready
invested. You are invested, and you will continue to invest in your business outside and
inside,oranynewbusinessyoustartup.

And if you recognize it as this thing works out with J.T., really our targets are real
businesses, but I suspect truthfully, out of pragmatism, that most people are going to be
toonot small, but not progressed enoughand there will probably be an educational
training mode that will come out of it, which will be good for small companies, because
anybodycanusethisandyoucanjustleverageitandratchetitup.

But just concentrate on the fact that if you've been living under the belief that there
mustbemore,theremustbeabetterway,theremustbeawaytogrowthissucker,there
must be way to gaindistinction, there must be way beyond banging my head against the
wall, and getting my brains beat out every month, and having no distinction in the
marketplace,andhatingMondaymorningstheansweris,thereis.

10. Youcouldenteremergingmarkets

Okay.So,here'saninterestingconcept.Ready?JayAbraham,withallmyattributes
mostpeopledon'tknowitI'matechnophobe.Idon'teventurnmycomputeron.Infact,
it's hilarious. I finally said to our IT guy, "Okay. Buy me a laptop." And they bought me a
hugeMacProthatI'mcarryingaroundlikeaTVset.AndIcan'tturniton.WhenIgotoa
hotel, I don't know how to get on the hotel thing. I lose everything. On my iPhone, I
accidentallydelete,whenItrytogoonthat.Butallthesetechnologycompaniescometo
me,andtheytoleratemyignorance,becauseiftheycantellmewhatit'ssupposedtodo,I
cannormallymakeitdobetter.ButIneedstatureinthetechnologyworld.

SothefirstthingIdoisImakeadealwithacompanythatwasstartedbyafounderof
SeagateTechnology.IbecomethechiefmarketingofficerandIhavethemcreateaworld
class,definitivereportthatIgetcoauthorshipto.ThesecondthingIdoisI'minvolvedin
thissocialmediapublishingcompany,andI'vehadfivecuttingedgereportscreatedforme
thatIhavecoauthorshipon.Third,iswehave150contributingexperts(includingthehead
ofsocialmediaatDIRECTV,MCSquared,WellsFargo,Ford,Microsoft,MicrosoftAsia,Bing)
andImakethemintroduceallthosepeopletomesoIhavearelationshipwiththem.AndI
trytoleverageeverybodyelse'sleverage.

AndI'mnottryingtogiveyouaverylineareducationhere.AllI'mtryingtodoishave
funbreakingyourparadigmopenandlettingpossibilitiesjustburstoutandlettheinmates
takeoveryourbrain.IhopeI'mdoingthat.

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11. Expandyourhorizons

Whathasdistinguishedmycareer,morethananythingelse,isI'mlikeTheAccidental
Tourist.Doyourememberthatmovie?Well,Ihavenoformaleducation.I'mnotsayingthat
withpride.IgotmarriedthefirsttimewhenIwaseighteen.Ihadtwochildrenattwenty.I
hadtheneedsofsomebodyforty,andtheworlddidn'tcare.AndatfirstIwasheartbroken
andcried,andthenIrealized,Nobodycares!

So, I went through an odyssey of being a business transient. I would go from one
industry to another industry to another industry, because I got bored. After about ten of
thosetransitionalexcursions,IlookedbackandIthought,Wow!IndustryAeverybodyin
that industry does pretty much the same thing, the same way. Industry B. Everyone does
the same thing the same way. Same thing with C and D. Not because the strategy is the
best.Notbecausethemarketingapproachisthebest.Notbecausethebusinessmodelis
thebest.Notbecausethecostortheriskisthebest.It'sjustthat'salltheyknow.

And I started taking filaments that I had learned from A and B and C and combining
them into hybrids and using them for D. And guess what? We led and lapped everybody,
andthat'swhenIstartedcreatingtheseoutrageouslyunbelievablesuccessstories.Andit's
notreallybecauseIknowthatmuch.It'sbecausemostpeopleacceptthatlittle.

NowbythatImeanwhenyourealize,asIrealize,thattheworldisabusstop.It'syour
oyster.YoucanbasicallydowhatI'llcallrelationalcapitalleveragingmaximizing,or"power
partnering,"orassetoraccessleveragedealsanywhereyouwant,asoftenasyouwant,as
broadasyouwant,asfrequentlyasyouwant.It'sonlylimitedbyyourbeliefinyourself,and
yourabilitytounderstandthepsychologyandthemechanism.AndI'mnottryingtotease
you, but that will probably take a couple of hours to tell you how to basically not only
maintaincontrolbutshowcertainty,overcometheinherentapprehensions,preemptallthe
reasonssomebodywouldsayno.

But once you master those fundamentals, if you believe it, you can do anything you
want, and I've got $9 billion documented to me because I believe it not for myself, but
mostly for other companies. And we've doubled and redoubled, and we've turned
companiesthathadthismuchcapitalintothisbig.Andyouhavethesameabilityaslongas
yourealizethatitisfolly,stupidity,asininitytotrytogofromheretohereovernight.Not
because it can't be done, but because you need to get your sea legs, or your negotiating
legs, or your deal making legs, or your "power partnering" legs, or your nuanced
understandingofrelationalcapital.

Butthere'snobusinesshere,orthere'snobodyherewithaviableproductandwhenI
sayaviableproduct,I'vegottobeverycandid.I'vehelpedalotofpeopleintheworldthat
teachpeoplehowtostartabusiness.There'salotofveryqualitypeople,andthere'salot

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of people that have done irreparable damage. There are people that have taught people,
taking$50,000oftheirmoneyandconvincedyou,youcanwriteabookonspiritualpoetry
andsellatrilliondollarswhichmaybeabletohappen,butit'shighlyunlikely.

Ifyouhaveagoodproduct,butyoudon'tknowhowtotakeittotherightmarket;if
youhaveagoodservice,butyoudon'tknowhowtotakeittotherightmarket;ifyouhave
a good small business, but you don't know how to replicate it; or you don't have the
management,oryoudon'thavethemoney,oryoudon'thavetheskill,oryoudon'thave
the knowledgeit's no problem. You can use derivatives of all the things I talked about
yesterday, and all thethingsI'mtalkingabouttoday,andallthethings Iwon'ttalkabout
becauseIdon'thavetime,andI'vegottobuildonit.

And I'mnotsayingthattoteaseyou,butyoucouldowntheworld.Everyonesaysto
me, "If I took everything away from you, what would you want to keep?" And I said two
things,andIsaidthisyesterday.Iwanttherightstoeverythingandfigureoutwhattodo
with them later, and I want access to other people's distribution, brand currency, clients,
access to their markets and their credibility, because I could figure $1 trillion to do with
them.

Anyofyoucandothat,too,aslongasyou'rewillingtostartslow.Thisisnotbeyond
yourability,oryourability.Theonlythingthat'sbeyondyourabilityisifyouwanttobe$10
milliontomorrow.Youmighthavetosay,Well,IthinkI'mgoingtodoa$200,000deal,ora
deal with a couple of smaller companies to get my sea legs. And I'm sorry, but I told
examples galore yesterday, and because I want to go forward today, you might cradle
somebodywhowashereyesterdayandsay,"TellmeJay'sstories."

12. Youcanexpandbeyondgeographicboundaries

And I told the story yesterday, but it was just me. I'm here. I havea company, if you
want to call it that. I have an assistant. I have a chief of staff who's assigned to keep me
fromforgettingthings.Ihaveawomanwhocollectsthemoneythat'sowedme.AndIhave
anintern.That'smybusiness.Iusedtohavefiftypeople.Ididn'tlikeit.

Now, I have partners in Russia in nine countries. I have partners in Tokyo that do $3
millionayear.IhavepartnersinAustralia,Japan,Singapore,andMalaysia.Ihavepartners
inthemagazinebusiness,whereweaccesshundredsofmillionsofdollarsworthofassets.I
havepartnersinthefinancialservicesbusiness.Ihaveapartnershipwithsomebodywho's
inthecloseoutbusiness.Ican'tevenremember.That'swhyI'vegotachiefofstaff,because
that's my primary problem. His problem is just remind me what the strategy is and next
stepI'vegottodo.

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ButI'mananomalythatyoumaynotbebecauseyou'reprobablymoreorganized,and
youprobablydon'tcarryaniProthat'slikeaTV.You'veprobablygotalittleonethatworks.
But you have the same capacity if you're willing to suspend your own anal or status quo
typethinking.Doesthisallmakesense?

13. Controlotherpeople'smarkets

I get the biggest kick. So, let's say that you're in a business that's starting to expand,
and there's somebody out there in a market, and they've got the lead, but you want to
dominate themnot just them but every market that's available. Let's not say dominate.
Youwanttocrushthemother.Youwanttotrouncethem.

Not because you're a vindictive, bad spirited competitor. Rather because you live by
whatIteach,whichisthestrategyofpreeminence,andyouknowthatyourserviceoryour
productrendersfargreatervaluetotheconsumer.Yourproductgivesagreateroutcome.
Youcaremore.You'reabettercompanytodealwith.Butthey'realreadythere.Howinthe
worldareyougoingtoevenmatchthem?

All you've got to do is find somebody else in that market, and any other market you
want, who's already got credibility. Who's already got distribution. Who's already got
access.Youcanusetheirfacilities.Youcanusetheirbrand.Youcanusetheirpeople.You
canusetheirbuyerlist.Youcaninstantly

This poor person is sitting there in the market. The other person quietly sitting back.
Arrogantly. Smoking a cigar. Got his or her feet up. And thinking, Ah, ha, ha. I've got the
market.Littledotheyknowthatsubtly,youarebasicallystakingoutyourself,figuringout
whichpreemptivepartnerwiththebestrelationalcapitalaccessareyougoingtoalignwith
that'sgoingtocrushthatpersonwithoutevenknowingwhathitthem.Andyoucandothat
overandoverandoveragain.

And I apologize if I'm confusing you, because as I said, I would normally start at the
beginninganddoaboutfivedaysofexplanationifIwasteachingthisinitsfullglory,soI'm
startingrightinthemiddle.Buthopefullythisisfascinating.Isit?Cool.

14. Youcangaincompetitiveadvantage

Idon'tcarewhatproductorserviceyou'vegot.There'severyoneelse,andthere'syou.
Andeveryoneelseisalinearthinkerwhohasbeeninculcatedandgroundedonthebelief
that we are islands. We build businesses by ourselves. We go out and we create our
advertising.Webasicallyfightforeverybuyerweget.It'sahard,competitivelifeandwe're
goingtowin.Phew!Hard.

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You say, "Okay. Well, more power to you. I'm going to go and find somebody who
already owns the market. Somebody who's already got a brand they spent $200 million
building.Alreadyhavefacilities.AlreadyhasallkindsofpeopletheycantellthatI'mnow
partofthem,ortelltobuyfromme,orgivethemcertificatestostartarelationship.

"Andovernight,youpoorsoul,whileyou'redoingitalone,I'mgoingtoenvelopeyou,
andI'mgoingtocrushyou,andI'mgoingtotakeyourmarketaway,andI'mgoingtohave
brand supremacyforever.And I'msorry, butthat'sthewayitgoes."Sortof cool,isn'tit?
Butyouhavethatallthetime.It'salwaysbeenthere.Noone'seversortoflaiditout.And
again,canyoudoitatthatlevelinstantly?Probablynot.Butcanyoudoit?Absolutely.Not
thathard.

15. Rapidlyoverpowerthecompetition

Icoulduseanotherexample,butit'sselfevident,isn'tit?

16. Jointmarketing

Well.Let'ssaythere'scertainthingsyoucan'tandtherearethatyoucan'tdothis.
Well,thenyoucanfigurealternativesB,C,D,EandF.AndI'vebeentrainedbymastersto
figureeverycontingency,everyheadstrategyoutthere.Let'ssay,forexample,you'reaCPA
oryou'reafinancialplanner,oryou'reanestateattorney.Anyofthosehere?Andyouwant
togointothemarketknowingthemarket,butyoudon'twanttospendallthemoneyor
theeffort.Doesthatsoundlikeyou?Maybe?

Well,here'swhatyoucando,andI'veonlydonethisaboutamilliontimes.See,what
most people are looking forand you're a perfect, valid exampleyou're looking for
guidance.Peoplearesilentlybeggingtobeleadaslongastheyfeeltheyarebeingleadby
somebodytheycantrustwhohastheirbestinterestsatheart.Theydon'tdenythatperson
economic gain, but they want to make sure that person doesn't just have his or her best
interests.Butyou'rehere,andit'sinherentinhumannature.Youwantguidance.Youwant
theidea.Youwanttoknowwhattodo,whytodoit,howtodoitbetter,richer,safer,more
prosperous[ly].

Well,ifyouwhetheryou'reaCPA,whetheryou'reafinancialplanner,whetheryou're
theestateattorneywantedto,youcouldgotoacorrespondinggroupofnoncompetitive
professionals.Whatareyou?You'retheestateattorney.YoucangotoaCPA.Youcangoto
afinancialplanner.Youcangotoanyotherprofessionalthathascomplementaryservices.

Youcouldsay,"We'regoingtodoakickassseriesofincrediblyhighvalue,provocative,
enormously fascinating seminars, and we're either going to do it to the open market, or
we're going to do it, even better, with a bunch of endorsers, who I will basically put

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together.Andwe'regoingtodoitatahotel.Andit'sgoingtobeonathemethat'sgoingto
be incredible. And I'll createeverything, and I'll figure out the marketing. And, oh, by the
way,youguysaregoingtopayforitbecauseI'mputtingitalltogether,andwe'lleachget
whateverbusinesscomesfromit."

I just gave you, in one fell swoop, three cool things. You one, moved all the expense
andrisktosomebodyelse.Two,youcangotosomepeoplethatareevenrelationallyabove
youintheirprestigeinthemarket,buttheydon'thavegoodideas,andyoucanbringthem
intospeak,andallofasuddenyourstaturejustraised.Ifthere'smoneybeingspent,you
makethembetheonesspendingtheirmoneybecauseyougottheidea.

Andifthere'smoneybeingspent,youcantakeiteventothesublime,byinsteadofjust
buyingadsormailinglists,yougotootherorganizationsandusetheirrelationalcapitalto
invite their members, or their readers, or their people to the activity. Does that make
sense?Prettycool,isn'tit?Okay.Andyoucandothatalldaylong.I'mjustusingarandom
example.

17. Jointsellingordistribution

It'sthesamething.Ifyouhadtonotthatyoudobutifyouhadtousemoney,which
is a fallback, and sometimes it's better, because you don't have to share revenue. It
depends.Sharingrevenueisgoodbecauseyoupayonlyfortheresults.Butifyouknowhow
successful it will be, sometimes you're paying a lot more than you have to. It might be
bettertogotosomebodywho'salreadygotdistributionandoffertopayaprorataforthe
salesperson,oraprorataforthedistribution.

If nobody's got distribution, it might be toin the example of the attorney and
financialplannergotosomebodythat'scompatiblebutnotcompetitive,andsay,"We're
goingtohireasalespersonwe'regoingtosharetogether.Orwe'regoingtosetupastorage
facility."Andyoucandoitalldaylong.

You'reonlylimitedtoyourcapacitytothinkintermsofupsideleverage,andtheone
thingIwillsharetoday,thatIsharedyesterday,wasananalogy.WhenItalkaboutleverage,
itisdiametrically,decisively,profoundlydifferentthanthekindofleveragethatyouthink
aboutinrealestate.NodisrespecttoJ.T.,butIusedtheanalogyinmedicalthatthere'stwo
kinds of cholesterol, good and bad, and if you have too much of the bad, you're blood
doesn'tflowandyou'redead.Butifyouhavealotofthegood,itcancompensateforthe
bad.

Well, the kind of leverage that I teach when I teach (I don't do a lot of teaching
anymore) but the kind that I do, when I operate for businesses behind the scenes, or
collaborationorcounselormentororguidethemisonlyupside.WhatI'mtalkingabout

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hasasclosetonodownsideriskasispossible.Theremightbealittlebitofeconomic,pionic
funding you've got to put out, but it's minuscule compared to what you're getting the
leverageoffof.

So when I talk leverage, I'm not talking about anything that's dangerous, and that's
expensive.Itmightcostmoney,butitwillonlycostmoneyifitworks,anditwillonlycost
moneyifitworksandmoneycomesin,andyou'donlybegivingbackmoneythatwasgiven
to you by mining somebody else's relational capital. Does that make sense? Pretty
intriguing,isn'tit?

18. Technologylicense

Yougetothercompaniesthathavespentyears,millions,tensofmillions,haveprestige,
and you can get a license to apply it to a different market, a different use, a different
country,andevenusetheirprestigealongwithit.

I just got the rightthere's a very prominent company in Switzerland that does this
monstrouslyimpressiveresearchonthederivativesoffishoil,buttheydovery,very,very
hightech,biotech,cuttingedgestuff.Andtheyjustcameoutwithaproductthat'sbasedon
caviar, believe it or not. It's got this incredible story,and it'sgot this incredible following,
and this incredible research. And it's got $20 million behind it. It's selling really well in
Europe.

And I just got the rights forare you readyhow much do you think I paid? They're
putting up money for me because I have distribution and I have prominence. And I can
make phone calls. And I can call people in alternative health. I can call people who are
prominentpeopleandgivethemfreeuse;andifitworks,havethembeendorsers.AndI
canorganizeanadvisorygroupofprestigiouspeoplelikethat.So,Ijustgotcontrolofallof
NorthAmericanotjustfornothing,butI'mgettingpaidfortheprivilege.

That'swhat'spossible.AndI'mreallynottryingto"funandgames"you,andI'malso
nottryingtosay,"Youcandowhatit'stakenmethirtyfiveyearstodo."ButI'malsosaying
everyone of you can do an application of this tomorrow at a level that's appropriate to
whereyouareandgetyoursealegs.Imean,Imightbeaweightlifter(I'mnot)thatnowI
press300pounds,butsometimeago,Istartedbypressingthirtypounds,andIhadtoget
thatright.So,it'snodifferentwithyouguys.

AndJ.T.wantedmetotrytoexplainthis.Again,Idon'tdoalotofseminarsanymore.
I'vedoneavariationofthis,andittookfivedays,andItookpeoplethroughit.Yesterday,I
didalotofpsychology.ButIhopethisisintriguingandexcitingandisworthyourvery,very
most precious, really, commodity, which is your opportunity cost and your time. Let me
continue.

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19. Cangiveyouaccesstoknowledgeandexpertisebeyondcompanyborders

Well,guesswhat?Idon'tknowanythingabouttechnology.ButguesswhatIhaveright
now? Everyone who is submitting articles to our magazinesand is the top social media
expert in their industryhas offered to spend as much time on the phone with me, as I
want,teachingme.

AndInormallygetpaid$50,000aday.Idon'tdoalotofit,butit'sagreatcontrastto
havingacompanypayme$20,000or$30,000amonth,plushavemeworkforthemmostly
on the comp. But people want to access my brain. And it's very easy, with that kind of
reputation,forpeopletowanttofeelsorryforsomebodyandwanttoteachthem.AndI
getalltheexpertiseIwant,becausetheywantreciprocity.

SoIgeteducatedonanythingIwant.Icanpickupthephoneandsay,"Uh,Ineedto
knowaboutthis."Okay,I'llhavetwentypeoplecallyouinanhour.Well,thisisapriceless
ability.Andagain,I'vetakenmyabilitytohonethat,toleverageittoamuchhigherlevel,
butyoucandoitatyourownlevel.Youscopearelationship.Theyallhaveexpertise.They
allhavetechnical.Youcangetaccesstoknowledgethatotherpeoplepayfortunesforjust
byknowhowtoequitably,ethically,honorablyaccessit.Again,I'mnottryingtoteaseyou.
Thatwilltakeacoupleofhoursofdemonstration,butit'sverycool.

20. Strengthenyourreputationintheindustryasaresultoftheassociation

Well,let'ssee.WhenIstarted,nobodyknewwhoIwas.SowhatIdidwasIwentto
thisisgoingtodateme,butItoldeveryoneyesterdayI'msixtythreeIstartedoutinthe
seventies and eighties. Back then there was not an Internet. There was a concept called
"investment newsletters." And the investment newsletters and the magazines were the
mediumthatpeopleturnedtoforexpertise.

Ifyouhadanymoney,andyouwereanentrepreneuroraprofessionaloraninvestor,
you went to one of fifty newsletters. If you were an entrepreneur, you would read
Entrepreneur magazine. Success magazine. Inc. magazine. Investor's Business Daily. Things
likethat.

Well,guesswhat?Ihelpedallofthose,andtheywerepastclients.Iwenttothem,and
Isaid,"Iwantyoutoputthefullforceofyourcredibilitybehindtellingtheworldifyou'rea
businessowner,oraprofessional,oryou'reaninvestorinbusinesses,andyouwanttosee
that business multiply and the profit explode, you better get on the phone and meet Jay
Abraham."So,Iinstantlyaccessedalltheyearstheybuiltofgivingadvicethatworked,and
the fiduciary relationships they had if they were money managers. And instantly I had

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people who trusted me implicitly, because they trust them. And this same dynamic is
availabletoyouinwhateverapplicationyouwant.Butyoucangetcredibilityinstantly.

TonyRobbinsitwashilarious.Atthepeakofhisstature(he'sstillveryprominent)but
he was like to die for. In the nineties he was on every infomercial. He was on Larry King
abouteveryafternoon.Well,Ihelpedhim,andIgothimtopromoteme.Well,Igottotake
instantadvantagewithaletterfromhim.

As I said, GuthyRenker spent hundreds of millions of dollars. Tony spent millions of

dollarsflyinghisGIVtoNewYorktogotoLarryKing.Hespentallthetimeonstagewithhis
previews, winning everybody over. He spent his twenty or fiftyhour days winning people
over. Well, I got to take full advantage of that instantly with a letter. That's pretty
interesting,isn'tit?

And I'm not saying it to make fun. Where's the gentleman who is the CSI person we
weretalkingto?DoyouunderstandI'mjustdoingthesamethingthatyoudo?I'mbasically
reverseengineeringtheprocess.Makessense,doesn'tit,becauseit'sgotalotofscientific
elementstoit.

Thiskindofthinkingisnotborn.Youcanlearnit,andyoucanmasteritanywhereyou
are,anywayyouwant.YesterdayItoldastoryofhowItaughtsomebodytodoitwhohad
no product, no knowledge, no capital, no business acuity and they made $1.2 million by
accessingrightsanddistributioninsixmonths.

Imean,youcandoitonanypartofthecontinuum.Youhaveabusiness,youcantake
itoutside.Youhaveabigbusiness;youcantakeitoutsideandbringitinside.Youhavea
productorservice,youtakeitoutside.Ifyouwanttobasicallydoitforothers,youcando
that.

It's hilarious. Franchise companies have to spend fortunes doing that. I was telling
yesterday that every time my son ever wants to buy a franchise, I always say, "Go to a
hundredmarkets.Findtheleadingindependent.Callhimup.Askhimifthey'dstilldothat
businessagain,iftheylikethebusiness,whattheirgrowthplansare.Iftheyaren'tgoingto
grow, ask them if you could sit and spend time codifying their methods, their strategies,
theirprocessesusingityourselfinyourmarket(ourmarket,California).Andifitworks,you
couldrelicenseittootherpeopleandsharetherevenuewiththem.Andveryfewwillsay
noifyouknowhowtodoit.

Butyoujustsupersededbeingafranchise.Therearelegalitiesyou'vegottoknow.But
youcandothisinanythingyouwant;anywhereyouwant,withanythingyou'vegot.You've
got a big business, little business, no business, and product, don't have a product,

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somebody's got a product they don't know what to do with it. You can take it over. Give
themaroyalty.It'sinfiniteifyourmindhasthecapacitytoexpand.

21. Widenyourscopeofinnovation

It'sallselfexplanatory.

22.Secureyourpositionasfrontrunner

Ialreadysaidthat.

23. Providemarketing,selling

Youcanhavea10,000personsalesforceovernight,exceptyoudon'thavetopayany
salaries.Youdon'thavetopayanydraws.Youdon'thavetopayanyvacations.Youdon't
havetohavehumanresources.Youdon'thavetohavemanagement.

It's hilarious. There's a big radio group I met with two weeks ago. They have 1,000
salespeople. I made a proposition that I will help them make their salespeople more
profitableforashareoftheenhancement.I'mgoingtoprobablygetitifIwantit.They've
gotabouta$50millionpayrollofsalespeopleandmanagers.They'vegotbenefitsgalore.
They'vegotfacilitiesthey'repayingfor.

I get to leverage all that, and I get between a quarter and a third of all the
enhancements,and I'mtalkingtoyouwhileI'mgettingthatdone.Icanbetalkingtoyou
andhave10,000salespeoplemakingmoney.Icanhaveanothercompanythathasamillion
visitorstotheirwebsite.Icanhaveanothercompanythat'sshowingatthirtytradeshows.
Anothercompanythathas500distributors.That'swhatyoucandoifyougraspthis,andit's
very,verypowerful.Andit'sallbeenatyourfingertipsforever.You'vejustneverthought
aboutit.

24.Easytoestablish

Yeah. They really are. There is psychology to it. There is structure to it. I really can't
explainitnow,butwhenyouunderstandhowtodoit,thereisapreemptivewaytopresent
ittoapropositionwhereit'sharderforthemtosaynothanyes.Ithastodowith,firstof
all,understandingthepsychologyofwhattheywant.

Sincetheydidn'tknowyouweregoingtopresentit,you'vegottobasicallyshowthem
thegap.You'vegottoshowthemhowitfillsit.You'vegottoproveyourcredibility.You've
gottoshowthemthere'snodownside.You'vegottoshowthemhowtheycanprevalidate

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itbeforetheycommittoit.You'vegottoshowthemwhattheycandofortheirmarket,or
whattheycandowiththeincrementalmoney.

You've got to know how to take them on a journey and then bring them back to the
factthatyou'retheonlyviablechoice,becausethefactthatyou'veexplaineditmeansyou
grasp it, and no one else who wanted to do anything like this grasped that. And so they
shouldtrustyou,becauseyouhavetheirbestinterestatheart,becauseyou'rewillingtodo
averysmall,safe,experiment.Ifitdidn'tgo,you'retheloseranditwillnevergoforward.If
itdoesgo,youbothwin.

Butthere'spsychologyandnegotiatingstrategyinvolved,butit'snothardtolearn,and
atanypartofthecontinuum(whetheryoudoitjustonelittleretailertoanother,orone
professional to another, or one multimillion dollar company to another) their derivatives
arethesamething.They'rejustalittlemoresophisticatedornot.

25. Youcansetupinstantdistributionnetworkseverywhere
26. Supplychainrelationships
27. Youcancapitalizeonpeople

WhenIstarted,andI wastryingtodistinguishwhat IwasallaboutnowIdealwith

preemptive. I don't want to be compared to anyone. I don't want my clients to be
comparedtoanyone.Iwanttocreatepreeminent,preemptivepositioningwherenobody
canputusunder.

But in the beginning when I started, I was talking about "unique selling proposition,"
whatdistinguishedmefromyou.AndIstartedoutsaying,"Well,I'mverysimple.Igotoa
business, and I find hidden assets, overlooked opportunities, underperforming activities,
underutilizedrelationships,underrecognizedresources,underacknowledgedrevenueand
profitsources.ThenItakethemandI,firstofall,turnthemintowindfallprocesses.ThenI
convertthemintoongoing,residualstreamsofincome,andIdoitatnorisktothem.AndI
shareintheupside.Thatwasmyproposition,andit'saprettycoolproposition,isn'tit?

But the essence of it was what I was getting at. I have a 200page assessment that I
makeclientsanswerbeforetheyworkwithme.Ihavean87questionselfdiagnosticthatI
makepeoplelookatbeforetheyworkwithme.Recognize[that]I'vebeenin465industries.
I'velookedatbusinessmodelstrategies.Thousandsofwaysofselling.Iknowninetythree
different ways to do referrals. I know fifty ways to find prospects. I know probably a
hundredwaystoaddvalue.Iknowhowtoeliminateriskahundreddifferentways.

So, I can look at any business and I can see overlooked assets, hidden opportunities,
grosslyunderperformingactivities,higherperformingalternativewaysofreachingmarkets.
Youcan,too,whenyougetamodesteducation.AndI'mnotsayingyou'vegotitnow,and

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as I said to J.T., I'm not even here trying to sell you anything. There might be a training
productthatcomesoutofthisasabyproduct.

I'mheretryingtotalkthroughtheelementsofaconceptheandIaredevelopingwhere
we'llhaveabusiness,wheretherightsizedcompanieswillcometousandpayusafeeto
mastermind and strategize their relational capital leveraging strategy, and get involved
either behind the scenes or sidebyside or do it for them. But I need to talk it through
anyhow,soyougettobetherecipientguineapigs.

28. HigherreturnROIsandROEs

Return on investment. Return on effort. Return on employees. We know, for

exampleandIdidn'tbringit.AndI'msorry,becauseIputthemasterPowerPointtogether
two days agobut I could give you a list of 105 (for lack of a better word) OBs, other
businesses'resources.Theirsalesforce,theircapital,theirbrand,theirdistribution.

I'm just telling you this because it's fascinating. I have two TV show pilots being
developedinpartnershipswithoneoftheguysfrom"SharkTank"becausethepeopleare
justblownawaybythetwoconcepts.Oneisleverage.Theotherisallthewaysyoucanuse
otherpeople'smoney.Andwe'redoingthingsfromeverythingfromteachingpeoplewith
lemonadestandstotakingbigcorporationsandshowingthem.

AndI'mtellingyouthisbecauseit'sreallyequallyasaccessibletoyouguys.And,again,
mostofyouaren'tthekindofclientsthatIthinkwewouldwanttoserve.I'mnotsayingit
belittling you, but everyone of you could learn how to utilize derivatives of this to do
whatever you're doing now, whatever you're doing in the future, whoever you work for,
what product or service you've got or you can get control of. You could do it with other
people.Yougetcontrolofit.

Imean,it'sinfinite.We'vetaughtpeoplehowtobematchmakers.We'vetaughtpeople
howtogetcontroloftheproduct.Giveroyaltiestootherpeople.We'vetaughtpeoplehow
todoitasaprofitcenterforothercompanies.We'vetaughtpeoplehowtodoitfortheir
company outside, and big companies how to do it, and put somebody inside to bring it
through.Imean,it'sjustinfinite.

29. It'sdifficultforyourcompetitorstoimitate

Once,if,andafteryougraspthis,andyoumakeyourpreemptivestrike,andyoualign
withthepreeminentrelationalcapitalpartnerinthemarket,andyou'vegotcompleteand
impenetrable control of their brand currency, and their reputation, and their good will,
everyoneelseisjustbasicallyit'sliketryingtoshootabulletoffofSuperman.Imean,it's

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likeyou'vegotaforceshieldtheycan'tpenetrate.Theylooklikeinterlopers.Theylooklike
littlegnatscomparedtoyou.Youcanacquirethatinstantly.It'sonly34,wow.

30. Remainfocusedonyourcore[values]

It'shilarious.Ihaveaccess,andI'mproudofit.I'vespentalifedoingit.Ihaveaccess
andcontrol(Ihavefunctionalcontrol)withoutanyoftheyokeofmanagement,withoutany
oftheyokeofinvestment.Istressformyclientsandmypartners[that]I'vegotinvolvement
in probably, at any given time, $400 million worth of activities that I don't have a penny
invested in. I don't have one person I'm paying, except my little support team. I get the
leverageoffofit.Igetthegood.Idon'thavetodealwiththebad.

Rightnow,mypartners,theserversblewoutbecausewedidatest,andtheygotafly
somewhere, and guess what? They've got to do that, because I've got my equity. I didn't
put a dime in. I've got the relationships. I've got the marketing prowess to monetize the
currency.Iknowwhattodowiththeadpages.Iknowwhattodowiththebrand.So,Iget
minefornothing.AndIdon'thavetoberesponsibleforanyofthat.It'sjustverypowerful
andliberating,andit'sthepolaroppositeofwhatmostpeoplehave.

IthinkIsaidyesterday.Iwastryingtogiveyouaphrasetoresonate,andIwastalking,
first of all, about Michael Gerber talking about The EMythworking "on" instead of "in"
thebusinessandthat'sacoolsoundingword,butnobodyknowswhattodowithit.It's
almostlikeDeming.DoesanyoneknowwhoDemingwas?Well,Demingwasaclient.Ihad
all these great clients. He talked about the process and the red bead experiment, and
everyonewouldgototheWeb,butnobodyknewwhatitwas.

I'mtellingyou.Thekeytoallthisistomakeyourbusiness,oryourbusinessactivities,
workharderandharderforyouthanyouworkforthem.Soyoucanstaydoingwhatever
you'redoing,andhavealltheseotherthingsworkingforyouwiththeminimalistofeffort,
the minimalist of investment, the minimalist of risk, but the maximums of yield and the
maximumsofprestige.

Andyoucanbecreatingnotjustnewrevenuestreams,butsustainablecashflowthat
guess what? Has asset value. Has borrowing capability. Could be sold. Could be leased.
Could be joint ventured. I've done it all the time. I've created a distribution channel that
didn'tmakealot,soI'dsellittosomebodyelseforfrontmoneyandhalfofwhattheygot.
OrI'dtradeitforsomethingelseIwanted.

WhatI'mtryingtodoiscreateforyouaplaygroundcalled"theworld."AndI'mtrying
togiveyouauser'sguidethatnooneelsehas.Andmyanalogyhasalwaysbeenlikethe
worldisa3Dmovie,andyouhavetheonlypairofglasses.Or,stateddifferently,becauseI
like metaphoric examples, pretend you decided you wanted to go and play a game of

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soccer.Andyoudidthefield,andyoufieldedyourguys,andyou'replayingforawhile,and
you'renothavingfun.Oryou'rewinning,butit'sjustnotabigenoughwin.So,youdecide,I
don'twanttoplayagain.Iwanttoplayfootball.MaybeIwanttoplayrugby.MaybeI'lldo
that.Youcanchangethegameanytimeyouwant.You canchangetherulesanytimeyou
want.

There'sonlyfourgoverningfactors.It'sgottobelegal,it'sgottobeequitable,it'sgot
tobeethical,andit'sgottoaddenormousvalue.ThekeytoeverythingI'mallaboutisnot
manipulating. I'm showing you the ethical ways to manipulate not in the negative, but in
the leveraging and the mechanical context of a situation, but it has to be predicated on
enormous value added to the other side. Enormous intention. Enormous integrity.
Enormousethos.Ifyoucandothat,anybodywhoknowsenoughaboutmyhistoryknows
thateverythingI'mtalkingtobetrue.Andit'sveryliberating.

Itoldthisstoryyesterday,butI'lltellitonemoretime.It'stoldmanyways,butitjust
demonstrates graphically the power of this example, told by somebody who says it was
Bernard Baruch or Rockefeller or Baron Rothschild. But supposedly years ago, somebody
cameuptooneofthemandtheywantedtoborrowmoney.Andhesaid,"Iwon'tloanyou
apenny,butI'lldosomethingahundredtimesmorevaluable.Iwillwalkarminarmwith
youfourtimesupanddownthefloorofthestockmarket.Andwheneverybodyseesthat,
everybodywillgiveyouallthemoneyyouwant.Everybodywillbeyourpartner."Andthat's
thepowerofendorsement.That'sthepowerofrelationalcapitalmanagement.

31.Moviereality

Therearethreeimplicationshere.Yearsago,friendsofminefoundoutthattheycould
takeaBorCcategorypersonality(somebodywhomaybehadstarredinaTVsitcomoraTV
showyearsago,orsomebodywhowasnotevenabigstarinthemovies,andnowwassort
of not) and they could have them become the spokesperson for their product, and that
woulddoubleortripletheresults,evenpayingthatpersonasmallroyalty.

Great example: John Ritter, who died many years ago, there was a product in an
infomercialcalled,"WhereThere'saWill,There'sanA."Itwasaproductdesignedtoteach
you how to get your kids better grades, and it wasn't doing well. And they brought John
Ritter in to do the very same infomercial. And it quadrupled, just because of his brand
currency.

Ihadafriendthatusedtheguyfrom"HappyDays,"TomBoswell.Andthatwasa40
percent increase. I'm going to tell you two stories here. And by the way, we've used
endorsement in many ways. We've used endorsement to use somebody's affinity. We've
usedsomebodywhoisapersona.We'veusedendorsementtocreateadvisorygroupswith
eitherpeoplewhowereprominentorpeoplewhosecurrentorpastjobwasprominent,like

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theheadoftheFDA,ortheformerheadofresearchatJetPropulsion,orwhatever.There's
nineteenwaystodoit.

The other way is now you'll see all the reality shows. They use different people's
products.Well,Ihaveafriendwhohasgotarealityshow.Ithinkit'sonMTVoreChannel.
Andit'sonfantasyrock'nroll.Andthedealwashehadtogetasponsortoputalltheirstuff
inbeforetheywouldbuytheshow.AndhewenttotheGuitarCenterandhewenttoSoI
mean,thereareallkindofveryfascinatingpermutations.

IhaveabunchoffriendswhenIdoseminarsI'mnotknocking[them].Idon'tknow
howJ.T.doesthem(andIdon'treallydothemanymore)butwhenwedidthem,itjustwas
adifferentmodelandethos.Ourswerepurecontentplays.Wedidn'tsellanythingonthe
platform. There's nothing wrong with selling on the platform. We didn't sell anyone a
sponsorship. The only residual sales that happened was I'd pick up either a couple of
$50,000clientsorfiveorsixclientsthatpaidme$25,000or$30,000amonthapiece,but
wenevertriedtosellanything.

Today, people that do shows like this, they'll offer things (nothing wrong with that).
They'll presell sponsorships. The bags and this. And they'll get back more than the cost
before they even do it. I'm not saying there's a right or wrong. I'm just showing you the
possibilities.Prettyinfinite,isn'tit?Intriguing.

32. MinimartsandSubways

Years ago, some brilliant person realized, Gosh! Here's a supermarket that's got
thousandsofpeoplecomingeverytime.Whatelsecouldweusethattrafficfor?Oh,could
weputabankinit?Oh,couldweputaSubwayinit?Oh,couldweputarestaurantinit?
Samethingwithgasstations.Gasstationstransformedwhenpeoplerealized,"Oh,youcan
putaSubwaythere.Oh,youcanputaMcDonald'sthere."AndjustmakingwhatIcall"the
moneyconnection,"connectingthedots.

I'vehadpeoplewhowerebrightenoughtoseetheconnection,tieuptherights,and
flipthemtosomebodyelse.Theydidn'tevenhavetheSubway.Theyjustgotcontrolofthe
assetortheaccess,andwiththatcontrol,theycouldgotoyouandsay,"Hey.You'vegot
twentyfive Subways? I've got access to twentyfive AM/PM minimarts on the biggest
highwaysinNorthAmerica.Wanttodoadeal?Paymeafrontfeeplusaroyalty.Andthey'd
alwayschargemorethantheyhadtopaytheotherperson.Butyoucanflipit,youcansell
it,youcankeepit.Ihopethisisstimulatingyourmind.AndI'mjustgettingintothat.I'm
sorryIcanonlydoalittlebithere.

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33. Typesofalliances

So,afewofthetypesofalliances.Youcandojointventures.Youcanacquirealease.
ThegreateststorythatIevertold,andit'saspinonthis,butyouknowtheconcept"one
person's trash is another's treasure"? Well, a lot of people's under converted leads are
somebodyelse'sgoldmine.I'llgiveyoutwoexamples,butIcouldgiveyouahundred.

So,oneofthegreatest,IthinkitwaslikeanobrainersuccessstoriesthatIhadwasin
Australia,anditwasfunny.Ihadaclientyearsago,andtheysoldenterprisesoftwarefor
smallandmediumbusinesses.Anditwasexpensive,like$50,000andup.Andtheyranads
inallthetrademagazinesinAustralia.AndIthinktheygotabout1,000leadsamonth.And
because itwas so expensive, they only converted 3 or4 percent,but that was enough to
makethemmoney,andtheywerehappy.

AndIlookedatit,andIsaid,"Well."Imightbeadeludedoptimist,butIsaid,"Idon't
believe that an entrepreneur really is going to take the time to inquire about enterprise
softwareunlessheorshereallyneedsit,andthefactthatthey'renotbuyingyoursmeans
eitheryoursistooexpensive,yourtermsarebad,too many bells andwhistles,toomuch
power,whateveritis.Buttheyprobablyneedenterprisesoftware."SoIsaid,"Whydon't
wegooutandfindsomebodythat'sgotgreat,lowerpriced,basic,fundamentalenterprise
software,butdoesn'tknowhowtoselltheirwayoutofapaperbag,andlet'stakeitover."
Andthefirstthingtheysaidis,"Wedon'twanttobeadistributor."

Isaid,"Thendon't.Tellthemtheycandowhatevertheywantwiththeirs.Wewanta
privatelabelrighttotaketheirs,addafewofourownbellsandwhistlessoit'sproprietary,
and sell it to all our nonconverted leads." And make a long story short, we took those
leads,andwemademoreprofitfromthepeoplethatoriginallymyclientcouldn'tsellthan
wedidfromtheonestheydid.Okay?

Howmanyotherwayscanwebasicallyacquireleads?Anybodyherehaveahouseora
condominium? Anybody here who has a house ora condominium ever remodel? Did you
evermakeanyadditionoranyimprovementcosmeticallyorstructurally?Okay.Imightbe,
again,adeludedoptimist,butI'llbetyoumoneythatthefirstthingyoudid,whetheritwas
akitchen,oraroof,orabackyard,oradriveway,oragaragedoor,oraswimmingpooland
spathatwasintendedtobetheonlythingyouweregoingtodo,butwhenyousawthat,
youthought,"Wellcrap(excusemylanguage),therestofthehouselooksold.NowI'vegot
todothekitchen."Isthatright?"Nowthebathroomlooksbad."

Well, I've made fortunes for people in remodeling just by buying other kinds of
remodelers either unsold leads or sold leads, just because I understand the cycle of life.
Doesthatmakesense?Thesepeoplespendafortunefindingthem.Andbytheway,most
contractorsandserviceprovidersareterribleatfollowthroughandsystems

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34.Acquiredlicense

I think I told you. I mean, I got trained in process analytics, in looking at the
performanceofallkindsofthings,tangiblyandintangibly,thatotherpeopledon'tlookat.
SowhenIseeanycompany,largeorsmall,thatoutperformsthenorm,Iassumethereis
some dynamic at work there that the owner may or may not even know. Could be a
strategy.Couldbeacasualstrategy.Merchandisingstrategy.Positioningstrategy.Strategy
theyusefortheirpersonnel.Strategyofdealingwiththeirvendors.Alloftheabove.None
oftheabove.Ifyoucanfigureoutwhatitisandyoucancodifyit,youcanlicenseitorsellit
totonsofotherpeople.AndI'vedonethatallthetime.

I'llsharewithyoutwodifferentquotesfromtwodifferentpeoplethatcoulddefinethe
restofyourbusinessorrealestatelife,andthenI'mgoingtoleave.Thefirstquoteisfrom
one of the [advertising greats], Leo Burnett. He said, "If you set your sights for the moon
and the stars, one thing is certain. You will never end up with a handful of mud." If you
reachforthemoonandthestars.Simplebutgraphic.

The other one is a guy who trains highperforming people. He says that most
entrepreneurs struggle with the wrong nonverbalized question. The question that they
tormentthemselvesis,AmIworthyofthis?CanIreallylearnJ.T.'spartnering?CanIreally
findinvestors?CanIreallydodeals?CanIreallyquitmydayjob?CanIreallybuildamillion
dollar,atenmilliondollarnetworth?CanIreallymakemyselfindependent?

Thismansayswhenyoureallyrealizehowmuchmoreispossiblefromyourtime,your
effort,yourenergies,yourintellect,youropportunitycost,yourresources,themarketplace,
yourcommunications,yourscopeofpossibility,youwillshift.Andnowthequestionwillbe,
isthegoalworthyofme,becauseIcandosomuchmore?That'swhatI'dliketoleaveyou
thinkingabout.Thankyou.It'sbeenanhonor.[Applause]

Ladiesandgentleman,JayAbraham.

Thankyou.Thankyouverymuch.

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